I currently have a 86 broncoII with a 302 v8. Im having issues with the braking performance. The brake pedal seems spongy for the majority of the travel then gets stiff with out any extra response to the braking. It does stop but not as fast as i would like. I am not able to make any sudden stops because the the pedal gets hard with no added braking powere no matter how hard i press. I recently installed a 95 explorer 8.8 with disc brakes. I replaced the front and rear calipers and installed a master cylinder from the explorer and an adjustable proportioning valve. I have recently installed a vacuum storage tank to help but not knowing if vacuum is the problem. Im not sure if there is any residual valves affecting the pressure. The only issue with the master cylinder is the resivour makes contact with the booster so i shimmed it out to clear and adjusted the booster pushrod out. any suggestions??

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You don't need the proportioning valve or the vacuum reservoir, for one thing. I have a disc brake 8.8 from a 97 Explorer, a disc brake D44 from a '76 Bronco and my stock master and booster... the brakes work very well.

How sure are you that you got the master cylinder completely bled? I don't think that the shim would cause any issues if you adjusted the pushrod length to compensate for it.